The Ontario government has capped the 2018 Annual Rent Increase Guideline at 1.8%. The increase of 1.8% for 2018 is the maximum a landlord can raise a tenant’s rent without the approval of the Landlord and Tenant Board. Landlords cannot increase rent for sitting tenants above the 1.8% guideline without seeking approval from the Landlord and Tenant Board. More information is available at this Ontario Government link:

This 2018 guideline increase of 1.8% is higher than the 1.5% rent increase for 2017. It is based on the Ontario Consumer Price Index (CPI), a measure of inflation calculated monthly by Statistics Canada.

The 2018 guideline increase takes effect from January 1, 2018 through December 31, 2018.

If the landlord intends to implement an Above Guideline Increase the landlord is required to abide by the regulations of the Landlord and Tenant Board and file an application with Landlord and Tenant Board for an Above Guideline Increase. Refer to the Brochure: 2018 Rent Increase Guideline published by the Landlord and Tenant Board (Social Justice Tribunal) for more details:

The Ontario government has set the 2017 Annual Rent Increase Guideline at 1.5%. The guideline increase of 1.5% for 2017 is the maximum a landlord can raise a tenant’s rent without approval of the Landlord and Tenant Board. This applies to most sitting tenants in private residential rental units covered by the Residential Tenancies Act. Rents charged to new tenants are at the discretion of the landlord.

The 2017 guideline increase takes effect from January 1, 2017 through December 31, 2017. As noted above, landlords cannot increase rent for sitting tenants above the 1.5% guideline without seeking approval from the Landlord and Tenant Board. This 2017 guideline increase of 1.5% is slightly lower than the 1.6% rent increase for 2016. It is based on the Ontario Consumer Price Index (CPI), a measure of inflation calculated monthly by Statistics Canada.

In April 2016, the Ministry of Municipal Affairs and Housing released a consultation paper which discussed Proposals to Encourage Small Landlords to Provide Rental Housing.

FMTA was a core stakeholder in the process and provided feedback about proposals. Although feedback on the proposals was originally due in late April, the government extended deadlines to June 30th in order to provide more time for feedback from tenants.

The FMTA Board is concerned that these proposals constitute the greatest attack on tenant rights since the Mike Harris government. More importantly, there’s no evidence that these proposals will encourage small landlords to provide a single unit of housing.

Major Proposals:

1) Require tenants to provide legal disclosure for any issues that they intend to raise at rental arrears eviction hearings to the landlord prior to the hearing.

2) Explore whether any changes should be made to the process for tenants appealing decisions of the Landlord and Tenant Board to the Divisional Court

3) Explore whether to allow landlords to terminate a tenancy based on violation of no-smoking provisions in tenancy agreements

4) Explore whether to allow landlords to prohibit pets in tenancy agreements in small buildings where the landlord also resides

Concerns:

1) There is no evidence that these proposals will create a single unit. The FMTA asked for any quantitative evidence (a study/survey) that showed that these proposals would “encourage small landlords to provide rental housing”. The Ministry didn’t have any. In fact the Ministry provided no estimate of the number of units they expect to be created by these proposals.

2) These proposals will encourage eviction of tenants. Three of the most concerning proposals (pre-disclosure of evidence, allowing landlords to prohibit pets, allowing eviction due to breeching a lease) can already lead to an eviction. These proposals simply make it easier for landlords to evict.

3) Lack of Fairness. Applications to the Landlord and Tenant Board are already dominated by landlords – 91% of all applications. These proposals will make it harder for tenants to bring up counter applications and appeal to Divisional Court.

Better Options:

1) Zoning. Provincial changes to the Planning Act for second units came into effect on January 1, 2012. Did these changes encourage small landlords to provide rental housing? Evidence-based analysis would provide an answer.

2) Licensing. Many small landlords receive no training on the requirements and difficulties for running a rental housing business. Licensing could help better prepare them.

3) Standardized leases. Many new, small landlords are shocked to find they cannot ban pets or smoking outright or that some fees included in their leases are illegal. Standardized leases would help train landlords to understand and follow the law.

4) Better law enforcement. While good landlords follow the law in terms of repairs, charges and tenant rights, they face similar difficulties and penalties to landlords that flagrantly break the law. Providing appropriate punishments for landlords who break the law and incentives for those who follow it could help spur rental housing growth.

Contact the Ministry!
Concerned about these proposals? The full list of changes can be found on the Ministry of Municipal Affairs website. Public feedback can be sent to residential.tenancies@ontario.ca.

Important noteFMTA Annual General Meeting – Join the FMTA for the 42nd Annual General Meeting on Saturday June 18th, 2016 at 1pm.Location: 120 Carlton St – Party Room. Corner of Jarvis and Carlton St. Closest station is College Subway.
Refer to this link for more details on the 2016 FMTA Annual General Meeting: http://www.torontotenants.org/news/fmta-annual-general-meeting-2016

The Ontario government has set the 2016 Annual Rent Increase Guideline at 2.0%. The increase of 2.0% for 2016 is the maximum a landlord can raise a tenant’s rent without the approval of the Landlord and Tenant Board.

This increase for 2016 applies to most sitting residential tenants. However, the guideline increase does not apply to new tenants. Rents charged to new tenants are at the discretion of the landlord.

The 2016 guideline increase takes effect from January 1, 2016 through December 31, 2016. Approximately 85% of private market tenants are will be covered by this recent guidelines increase. As noted above, landlords cannot increase rent for sitting tenants above the 2.0% guideline without seeking approval from the Landlord and Tenant Board. Refer to:2016_Rent_Increase

This 2016 guideline increase of 2.0% is higher than the 1.6% rent increase for 2015. It is based on the Ontario Consumer Price Index (CPI), a measure of inflation calculated monthly by Statistics Canada.

The Annual Rent Increase Guideline for 2015 has been set at 1.6% by the Ontario government.

Based on this guideline the maximum amount a landlord can increase a tenant’s rent between January 1 – December 31, 2015 is 1.6%. This increase will apply mostly to sitting tenants who face rent increases during that period.

The Ontario government has announced that the Annual Rent increase Guideline for 2014 will be 0.8%. This increase of 0.8% is the second lowest rent increase since the introduction of rent regulations.

According to the press release posted by the Ministry of Municipal Affairs and Housing this small increase “will help to ensure Ontario families have more money in their pockets while keeping housing affordable”. The explanation for this small increase is based on the Ontario Consumer Price Index. Refer to this link: http://news.ontario.ca/mah/en/2013/06/2014-rent-increase-guideline.html

This modest increase of 0.8% will be a welcome relief to those who are on fixed incomes and also those struggling to meet the cost of their monthly basket of goods in this tough economy. Tenants should make a careful note that the Annual Rent increase Guideline of 0.8% is the maximum amount a landlord can increase a tenant’s rent between January 1- December 2014 . This increase will apply mostly to sitting tenants who face rent increases during that period.

Tenants should also note that the landlord can only increase rents above the0.8% guideline by filing an application for an Above Guideline increase with the Landlord and Tenant Board. Given this low rent increase for 2014 tenants need to be wary of any Above Guideline Increase that Landlords might pursue with the Landlord and Tenant Board and be prepared to contest it. Refer to this link at the website of the Landlord and Tenant Board: http://www.ltb.gov.on.ca/en/About_Us/STEL02_111230.html

NOTE – Check these links for more details on rent reduction and rent increase guideline in 2014:

______________________________________________Annual Rent Increase Guideline for 2013 will be 2.5%. The 2.5% guideline represents the maximum percentage by which a landlord can increase rent in 2013.

Tenants should note that the Ontario government bases the calculation of the annual rent increase on the Consumer Price Index (CPI) which is compiled annually by Statistics Canada. The CPI which is currently calculated at 2.6% is higher than 2.5% approved for the 2013 annual rent increase. This decrease was the result of legislation passed by the Ontario Government on June 13, 2012 and which resulted in an amendment to the Residential Tenancies Act, 2006. This amendment ensured that the Annual Rent Increase Guideline for 2013 will be capped at 2.5 per cent. Is it possible that the government is acknowledging that the CPI formula is flawed and does not reflect the actual cost of living expenses? Will leave that question for the economists to ponder.

We tenants are grateful that rent increases have been capped and, compared to the 2012 Rent Increase Guideline, there will be a decrease in the annual rent increase guideline for 2013. However, we must keep in mind that landlords can apply to the Landlord and Tenant Board for an Above Guideline Increase. Landlords will have to make a successful application to the Landlord and Tenant Board in order to raise rents above the capped increase of 2.5%.

Once again the Federation of Rental-Housing Providers of Ontario (FRPO) have indicated they are not enthused by the level of the annual rent increase. The FRPO argued for a much higher increase in their submission to the Ontario government. Refer to this link: http://www.frpo.org/documents/FRPO%20Bill%2019%20Deputation1.pdf Fortunately for tenants the legislation passed by the Government of Ontario reflected the current economic realities facing renters and set a cap of 2.5% on the 2013 annual rent increase.

For more detailed information on the 2013 Rent Increase Guideline check these links:

IMPORTANT NOTICE ON LAST MONTH RENT (LMR) – The landlord must pay the tenant interest on the rent deposit every year. Under the Residential Tenancies Act the interest charged on your last month’s rent will be equal to that year’s Annual Rent Increase Guideline amount. Landlords have the option to add that interest to your last month’s rent deposit or that interest can be applied as a reduction in your annual notice of a rent increase. Check this link: http://www.ltb.gov.on.ca/en/Key_Information/STDPROD_098894.html